Why Binance recommends switching crypto from WazirX to Binance

Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, mentioned that customers holding crypto on WazirX should transfer it to Binance’s platform.

He stated in a tweet that,

If you have funds on WazirX, you should transfer it to Binance. As simple as that. We can disable WazirX wallets on a technical level, but we can’t/won’t. And as many debates as we endure, we cannot/will not harm the users.

This news was followed by the Enforcement Directorate (ED), the Indian law enforcement agency notifying that WazirX assets had been frozen. WazirX has been linked to the world’s largest crypto exchange Binance. This investigation was carried out as WazirX was suspected of violating foreign exchange rules.

After WazirX released a statement on Twitter about deactivating the WazirX wallets, there were several statements from Binance CEO and WazirX founder about whether Binance had required WazirX. This has also intensified the conflict between Binance and WazirX.

Crypto Exchange WazirX is evaluating the action plan

WazirX disagreed with the allegations made by the ED in a press release. Crypto exchange WazirX is currently working on its next action plan. The Enforcement Directorate had frozen assets worth $8.15 million (₹646.70 million).

A spokesperson for WazirX stated,

We have cooperated fully with the Enforcement Directorate for several days and have responded to all their inquiries fully and transparently. We do not agree with the claims in the ED press release. We are evaluating our further action plan.

Binance’s CEO was quick to issue a statement denying that the company had acquired WazirX nearly three years after WazirX and Binance announced the acquisition. CZ had claimed that the acquisition of WazirX was never completed.

However, Nischal Shetty, founder of WazirX has disagreed and stated that this exchange was acquired by Binance.

Nischal Shetty also tweeted that Binance owns the WazirX domain name, with root access to Amazon AWS web hosting servers, owns all crypto assets and also receives the crypto profits.

Binance’s clarification on the tweet Posted by WazirX

Changpeng Zhao in response to the tweet by Nischal Twetty, said,

Wazirx’s founding team maintained control over the operation of the platform. We (Binance) were never given data or control over users, KYC, etc.

In addition, Zhao also emphasized,

We do NOT have control over the trading system. You just provided the AWS login, no source code, no distribution capability. You also retained access to your AWS account, source code, distribution, etc.

The series of tweets was followed by another tweet in which CZ called WazirX “uncooperative”. He also mentioned that only WazirX has been uncooperative with Binance, so similarly, the exchange may have been uncooperative with ED as well.

In response to the ED’s investigation, Nischal Shetty tweeted that Zanmai Labs, the entity that owns WazirX “has been cooperating with the ED for over 7 days and has submitted all necessary data.”